Why Chainlink Unlock on Binance Can Trigger LINK Price Rally Soon?

Oracle service provider Chainlink has once again unlocked LINK tokens earlier today on binance, as part of their scheduled unlocking. Despite this supply increase in the market, if history repeats, the LINK price could be gearing up for a major rally going ahead.

Chainlink Unlocks 18.125 Million Native Tokens

As per the on-chain data, Chainlink has unlocked a total of 18.125 million LINK tokens per the ongoing unlocking schedule and deposited them to crypto exchange Binance. In total, 18.75 million $LINK tokens, worth $215 million, were unlocked, with 625,000 $LINK ($7.18 million) sent to a multisig wallet.

In the last two years since August 2022, Chainlink has unlocked a total of $1.5 billion worth of LINK tokens every month while depositing around 126 million $LINK to Binance, at an average price of $10.13.

Interestingly, historical data shows that after every LINK token unlock, the LINK price has surged in 30 days following the unlock. This has been true for seven out of the past eight unlocks.

Despite these massive unlocks and LINK deposits to centralized exchanges (CEXs), Chainlink still continues to hold 372.75 million $LINK tokens across 24 non-circulating supply contracts.

LINK Price Rally Ahead?

The LINK price movement has been a bit laggard recently with flat returns over the past month. After the Chainlink price touched a high of over $20.00 this year in March, the LINK price has moved sideways and corrected more than 50% since then. Currently, the Chainlink price is trading at $11.35 with a market cap of $7.114 billion.

Thus, if history repeats again and LINK prepares for the rally, it has a 100% run-up towards hitting a new all-time high level. As per the recent report, there’s a lack of momentum for LINK price in either direction suggesting a major indecision among traders.

On the developmental front, the oracle platform has formed some key partnerships. For e.g. Ethereum Layer-2 scaling solution Metis has recently integrated Chainlink Cross-Chain Interoperability Protocol (CCIP).

According to Metis, this collaboration aims to expand the variety of dApps developers can create on its platform, opening up unique opportunities for cross-chain functionality.

Just two weeks back, Sonic Labs integrated Chainlink CCIP to enhance the functionality of decentralized applications (dApps) on its platform.